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Figure: Classical Model of the Price Level
-(Figure: Classical Model of the Price Level) Look at the figure Classical Model of the Price Level. If the central bank increases the money supply such that aggregate demand shifts from AD1 to AD2, according to this classical model, real GDP will:
Standard Normal Distribution
The standard normal distribution is a special case of the normal distribution with a mean of zero and a standard deviation of one, used in z-tests.
Mean
To determine the arithmetic average, one sums up every number in the collection and divides by the number of elements in the collection.
Standard Deviation
An indicator that measures how much a set of data points spread out or diverge.
Z-Score
An index that quantifies how far a particular value stands from the dataset's mean, measured in units of standard deviations away from the mean.
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